Indian officials have said they would keep purchasing oil from Russia despite threats of penalties from US President Donald Trump, The New York Times reported on August 2.

New Delhi has been among the top buyers of seaborne Russian crude since Western sanctions altered Russia’s trade flows. But the latest shift suggests a cautious recalibration, especially by state-owned players such as Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), Hindustan Petroleum Corp (HPCL), and Mangalore Refinery and Petrochemicals Ltd (MRPL), according to four people familiar with their procurement strategy.

Two senior Indian officials said there had been no change in policy, with one official stating the government had "not given any direction to oil companies" to cut back imports from Russia, according to the New York Times reported on August 2.

Trump indicated last month that India would face additional penalties for purchasing Russian arms and oil, though he later said he did not care what India does with Russia.

The US President told reporters that he had heard India would no longer be buying oil from Russia, though Indian officials disputed this claim.

Trump threatened 100% tariffs on countries that buy Russian oil on July 14 unless Moscow reaches a major peace deal with Ukraine, as part of broader efforts to pressure Russia over its invasion of Ukraine.

Russia serves as India's top oil supplier, accounting for approximately 35% of India's overall oil supplies, making any policy change significant for both countries' economies.

Indian state refiners stopped buying Russian oil in the past week as discounts narrowed in July, though this appeared to be driven by economic rather than political considerations.

The Indian government's position reflects New Delhi's strategy of maintaining economic ties with Russia whilst navigating pressure from Western allies over the Ukraine conflict.

India has consistently defended its energy imports from Russia as necessary for its economic development and energy security needs despite Western sanctions on Moscow.

India’s state-owned refiners have halted purchases of Russian crude oil recently, industry sources told US media, over the increasing pressure a day earlier.